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PART III: RECALCULATING FAMILY SHARE AND SUBSIDY AMOUNT 11-III.A. OVERVIEW After gathering and verifying required information for an annual or interim reexamination, SARA must recalculate the family share of the rent and the subsidy amount, and notify the family and owner of the changes [24 CFR 982.516(4)(2), HCV 12-6 and 12- l o] .While the basic policies that govern these calculations are provided in Chapter 6, this part lays out policies that affect these calculations during a reexamination. 11-III.B. CHANGES IN PAYMENT STANDARDS AND UTILITY ALLOWANCES In order to calculate the family share of the rent and HAP amount correctly, changes in payment standards, subsidy standards, or utility allowances may need to be updated and included in SAHA's calculations. Specific policies governing how subsidy standards, payment standards, and utility allowances are applied are discussed below. Payment Standards [24 CFR 982.505] The family share of the rent and HAP calculations must use the correct payment standard for the family, taking into consideration the family unit size, the size of unit, and the area in which the unit is located [HCV GB, p.12-5]. See Chapter 6 for information on how to select the appropriate payment standard. When SARA changes its payment standards or the family's situation changes, new payment standards are applied at the following times: If SAHA's payment standard amount changes during the term of the HAP contract, the date on which the new standard is applied depends on whether the standard has increased or decreased: - If the payment standard amount has increased, the increased payment standard will be applied at the first annual reexamination following the effective date of the increase in the payment standard. - If the payment standard amount has decreased, the decreased payment standard will be applied at the second annual reexamination following the effective date of the decrease in the payment standard. • If the family moves to a new unit, or a new HAP contract is executed due to changes in the lease (even if the family remains in place) the current payment standard applicable to the family will be used when the new HAP contract is processed. Subsidy Standards [24 CFR 982.505(c)(4)] If there is a change in the family unit size that would apply to a family during the HAP contract term, either due to a change in family composition, or a change in SAHA's subsidy standards (see Chapter 5), the new family unit size must be used to determine the payment standard amount for the family at the family's first annual reexamination following the change in family unit size. ~~02~12 Page 11-8